In the upcoming weeks we are going to release a few major improvements to the loan application process aimed at limiting the time the investors’ capital is locked in the loans and does not generate return.
Earlier this summer we started factoring in funding availability when making loan offers to the borrowers, and we already see fewer loans on the market that end up unfunded. We are going to continue our efforts with the following changes:
- We will perform analyst review of the applicants’ information and provided documents before listing the loan application on the Primary Market. This change will eliminate loan cancellations that are caused by the discrepancies in the provided information.
- Further, we will require loan applicants to complete bank account, ID and address verification before listing the loan application on the Primary Market. This change is expected to limit loan cancellations due to incomplete verification of the applicant.
- We will also eliminate two bits of functionality to reduce privacy concerns raised by our customers. Primary Market questions and answers section will be removed along with a download link under My Investments to the loan application document signed by the borrower.
- Finally, we will limit the time that a loan is listed on the Primary Market by half, as part of our ultimate goal of getting all loans that we list on the market to be funded within 24 hours. This change will limit the time when investors capital is locked in the “reserved” status and produces no return.
According to the laws, loan applicants should have a right to cancel their loans applications; however, we believe that the above changes will allow us to minimize the “opportunity cost” for investors in case of such cancellations.